People must take certain steps people before opening their businesses. The first consideration is financing. You will need to finance your business with your savings, a retirement fund or from a bank loan. In addition, you may need certain licenses. For example, a retail store will need a vendor's license for collecting sales taxes from customers, according to Business.gov. Liquor stores will need permits to sell alcohol.

Industry Analysis

One important step before opening your busy is studying your competition. Study key competitors in your industry. Order secondary marketing research data about your industry, including market share or the percent of sales each competitor holds in the marketplace. You can order secondary research reports from companies that include Forrester Research or Nielsen. The purpose of studying market share is to better ensure there is room for another company in the marketplace. Determine whether the market saturated for your particular product or service, or if is growing because of a new technology.

Finding Supplier

You may need a wholesale or manufacturer supplier if you are selling products by retail, the Internet or mail order. Contact the National Wholesalers Association for a potential distributor. Go to Tradepub.com and order free publications on your industry, according to Businessknowhow.com. Go to the library and research the "Thomas Register of Manufacturers," which is also available at Thomasnet.com. Contact several of the suppliers. Select the distributor that provides you with the lowest unit cost. However, it would behoove you to use a distributor that drop-ships product. Drop-shipping wholesalers and manufacturers will usually allow you to order one product, if necessary, which will keep your product inventory level down.

Location

Decide where you will operate your business. Start your business from home if you are running a consulting or direct sales company. A home office will limit your overhead expenses. You may also be able to deduct part of your mortgage for having a home office, according to the Internal Revenue Service. Like real estate, location is extremely important if you run a retail store. Choose a high traffic location near a strip mall, major road or shopping center. However, make sure you locate your business near your target customers. For example, locate your women's boutique in a higher-income area, as women with a high disposable income will likely be your primary customers.

Equipment And Supplies

Obviously, you will need certain equipment to run your business, such as a computer, printer and fax machine. These items are available for rent if you are hiring multiple employees, which will keep your initial expenses down. You may also need certain supplies for your business. For example, you will need staplers, hole punchers, markers, pens, pencils, scissors and Post-It notes if you run an office. You will need shelving units and store signs for a retail outlet.

Advertising

Most business owners will need to advertise their products to attract customers. Some common advertising vehicles include direct mail, classified and display ads, Internet search engine placement, billboards, radio and television ads. All advertising should follow the AIDA -- attention, interest, desire and action -- principle. Use headlines, noises or opening statements to attract the consumer's attention. Build up the consumer's interest level by telling them how your product or service will benefit them. Increase the consumers' desire by having them imagining themselves using your product. Ultimately, compel the reader or listener to go out and purchase your product or service.